Intellicheck Mobilisa Announces Third Quarter 2015 Financial Results

JERICHO, N.Y.--(BUSINESS WIRE)--Intellicheck
Mobilisa, Inc. (NYSE MKT:IDN), a leader in identity authentication,
verification and validation solutions, today announced its financial
results for the third quarter ended September 30, 2015.

Revenue for the third quarter ended September 30, 2015 decreased 31.7%
to $2,199,473 compared to $3,218,344 in the same period of the previous
year. During the quarter, the Company sold its wireless division that
accounted for only $24,000 of third quarter revenue versus $741,000 in
the same prior year period. Excluding the revenue generated from the
wireless division from both periods, sales were down 12% for the third
quarter. Gross profit as a percentage of revenues increased to 63.5% for
the three months ended September 30, 2015 compared to 62.6% for the
three months ended September 30, 2014.

“We continue to achieve very strong gross margins, and expect our
margins to increase further as our newly implemented SaaS business model
generates a larger percentage of our overall revenues," commented
Intellicheck’s CEO Dr. William Roof. “The third quarter divestiture of
our wireless division was another important step in support of our
efforts to focus on our core competencies in the identity authentication
and verification space. We anticipate multiple product adoption
announcements in the coming months regarding locations that are live
with our products, reflecting the success of our efforts. With the
rising adoption of our Law ID™, Age ID™, Retail ID™
and Defense ID® product offerings, we remain confident that
we are on the right path and believe that we are adequately capitalized
for growth.”

Adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization and certain non-recurring charges) was a loss of ($734,000)
for the third quarter of 2015 compared to a gain of $445,000 for the
third quarter of 2014. A reconciliation of adjusted EBITDA to net income
is provided elsewhere in this release. The net loss for the three months
ended September 30, 2015 was ($1,267,797) or ($0.13) per diluted share
compared to a net gain of $327,743 or $0.07 per diluted share for the
quarter ended September 30, 2014.

Cash and cash equivalents at the end of the quarter totaled $6.7 million
or $0.68 per diluted share. Stockholders’ equity totaled $17.7 million
at the end of the quarter or $1.79 per diluted share.

The Company’s booked orders for the three months ended September 30,
2015 decreased 34% to$2,035,665compared to $3,079,323
for the same period in 2014. Excluding the $418,092 in wireless bookings
from the prior year’s quarter, the Company’s booked orders were down 24%
for the third quarter. Driven by sales in the banking and
telecommunications markets, commercial ID bookings increased 24% but
were more than offset by a 43% decline in government bookings for the
quarter.

As of September 30, 2015, the Company’s backlog, which represents
non-cancelable sales orders for products not yet shipped and services to
be performed, increased 26%, to approximately $898,000 compared to
$710,000 at September 30, 2014; and increased 69% versus December 31,
2014 when our backlog was approximately $530,000.

“Our balance sheet remains strong and we remain confident that we are
on-track to achieve profitability as we continue to execute our
strategic plan for expanded market adoption of our cutting-edge product
offerings and leverage our robust patent portfolio to enhance our
position as an industry innovator. We look forward to reporting our
progress to our shareholders over the coming quarters regarding
additional developments that will underscore the traction of our new
SaaS product offerings,” Dr. Roof concluded.

The financial results reported today do not take into account any
adjustments that may be required in connection with the completion of
the Company’s review process and should be considered preliminary until
Intellicheck Mobilisa files its Form 10-Q for the fiscal quarter ended
September 30, 2015.

INTELLICHECK MOBILISA, INC.

CONSOLIDATED BALANCE SHEETS

ASSETS

September 30,

December 31,

2015

2014

(Unaudited)

CURRENT ASSETS:

Cash and cash equivalents

$

6,665,599

$

2,966,350

Accounts receivable, net of allowance of $49,613 and $78,724 as of
September 30, 2015 and December 31, 2014, respectively

The webcast will be available for 14 days following the conference call.

About Intellicheck Mobilisa

Intellicheck Mobilisa is an industry leader in identity authentication,
verification and validation solutions in both the U.S. and Mexico. The
Company holds 24 patents including many patents pertaining to
identification technology. Its identity solutions support customers in
the national defense, law enforcement, retail, hospitality and financial
markets. The Company’s products scan, authenticate and analyze
components of identity documents including driver licenses, military
identification cards and other government forms of identification
containing magnetic stripe, barcode and smart chip information. Once
extracted from the identity card, the information can be used to
populate forms as well as provide safety, security and efficiencies
throughout these markets. For more information regarding Intellicheck's
innovative products, please visit www.intellicheck.com.

Adjusted EBITDA

Intellicheck Mobilisa uses Adjusted EBITDA as a non-GAAP financial
performance measurement. Adjusted EBITDA is calculated by starting with
net income (loss) and adding back interest, income taxes, impairments of
long-lived assets and goodwill, depreciation, amortization and
stock-based compensation expense. Adjusted EBITDA is provided to
investors to supplement the results of operations reported in accordance
with GAAP. Management believes that Adjusted EBITDA provides an
additional tool for investors to use in comparing Intellicheck Mobilisa
financial results with other companies that also use Adjusted EBITDA in
their communications to investors. By excluding non-cash charges such as
impairments of long-lived assets and goodwill, amortization,
depreciation and stock-based compensation, as well as non-operating
charges for interest and income taxes, investors can evaluate the
Company's operations and compare its results on a more consistent basis
to the results of other companies. In addition, adjusted EBITDA is one
of the primary measures that management uses to monitor and evaluate
financial and operating results.

Intellicheck Mobilisa considers Adjusted EBITDA to be an important
indicator of the Company's operational strength and performance of its
business and a useful measure of the Company's historical operating
trends. However, there are significant limitations to the use of
Adjusted EBITDA, because it excludes interest income and expense,
impairments of long-lived assets and goodwill, and stock based
compensation expense, all of which impact the Company's profitability,
as well as depreciation and amortization related to the use of long-term
assets, which benefit multiple periods. Intellicheck Mobilisa believes
that these limitations are compensated by providing Adjusted EBITDA only
as a supplement to GAAP net income (loss) and clearly identifying the
difference between the two measures. Consequently, Adjusted EBITDA
should not be considered in isolation or as a substitute for net income
(loss) presented in accordance with GAAP. Adjusted EBITDA as defined by
the Company may not be comparable with similarly named measures provided
by other entities.

Safe Harbor Statement

Statements in this news release about Intellicheck Mobilisa’s future
expectations, including: the advantages of our products, future demand
for Intellicheck Mobilisa’s existing and future products, whether
revenue and other financial metrics will improve in future periods,
whether Intellicheck Mobilisa will be able to execute its turn-around
plan or whether successful execution of the plan will result in
increased revenues, whether sales of our products will continue at
historic levels or increase, whether brand value and market awareness
will grow, whether the Company can leverage existing partnerships or
enter into new ones, and all other statements in this release, other
than historical facts, are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995
(“PSLRA”). This statement is included for the express purpose of
availing Intellicheck Mobilisa, Inc. of the protections of the safe
harbor provisions of the PSLRA. It is important to note that actual
results and ultimate corporate actions could differ materially from
those in such forward-looking statements based on such factors as market
acceptance of Intellicheck Mobilisa’s products, changing levels of
demand for Intellicheck Mobilisa’s current and future products,
Intellicheck Mobilisa’s ability to reduce or maintain expenses while
increasing sales, customer results achieved using our products in both
the short and long term, success of future research and development
activities, Intellicheck Mobilisa’s ability to successfully manufacture,
market and sell its products, Intellicheck Mobilisa’s ability to
manufacture its products in sufficient quantities to meet demand within
required delivery time periods while meeting its quality control
standards, any delays or difficulties in the Company’s supply chain, the
success of the Company’s sales and marketing efforts coupled with the
typically long sales and implementation cycle for its products,
Intellicheck Mobilisa’s ability to enforce its intellectual property
rights, changes in laws and regulations applicable to the Company’s
products, the Company’s continued ability to access government-provided
data, the risks inherent in doing business with the government including
audits and contract cancellations, liability resulting from any security
breaches or product failure, and other risks detailed from time to time
in Intellicheck Mobilisa’s reports filed with the SEC. We do not assume
any obligation to update the forward-looking information.